India's Fund Managers Fight
Industry's Negative Image

BOMBAY -- Indian regulators and fund managers are looking at new measures to win back investors sulking over shrunken portfolios.

Though India's stock market has rebounded sharply in recent months and foreign cash is pouring in, the domestic mutual-fund industry is floundering as returns shrink and investors pull out their money.

The negative image of mutual funds comes as India liberalizes its economy and attempts to shift...